IIT Madras to Partially Monetise Indo-MIM Investment Through Upcoming IPO

The Indian Institute of Technology (IIT) Madras is set to partially monetise its investment in Indo-MIM Ltd. as the precision engineering company gears up for its IPO. The institute will sell part of its shareholding through the Offer for Sale (OFS) but will remain an investor in the company after it goes public.

According to the Red Herring Prospectus (RHP) filed on July 17, IIT Madras intends to sell up to 23.1 lakh equity shares in the IPO. This is part of a partial exit, with the institute holding the rest of Indo-MIM shares after the listing.

IIT Madras to Retain Stake

Before the IPO, IIT Madras holds 46.2 lakh equity shares, representing approximately 0.95% of Indo-MIM's pre-offer equity share capital.

By selling out about half of its investment, the institute will realise part of its investment while maintaining exposure to the company’s future growth.

The prospectus states that IIT Madras acquired these shares on February 1, 2024, through a gift transfer.

IPO Structure

The IPO will consist of two components:

• Fresh Issue: Equity shares worth up to ₹500 crore.
• Offer for Sale (OFS): Up to 6.82 crore equity shares by existing shareholders.

Besides IIT Madras, other selling shareholders include:

Anuradha Koduri

While the proceeds from the fresh issue will go directly to Indo-MIM for business purposes, the money generated through the Offer for Sale will be received by the existing shareholders selling their stake.

The company is yet to announce the price band for the IPO. So the exact value of IIT Madras' stake sale will only be known once pricing details are disclosed.

About Indo-MIM

Indo-MIM is among the top manufacturers of metal injection moulded (MIM) components and precision-engineered products in India.

Its products are used in a wide range of industries including:

• Aerospace,
• Automotive,
• Medical devices,
• Defence,
• Consumer goods,
• Industrial engineering.

Apart from metal injection moulding, the company also offers:

• Precision machining,
• Investment casting,
• Ceramic injection moulding,
• Metal additive manufacturing (3D printing).

Global Manufacturing Presence

Indo-MIM has established manufacturing facilities in different countries, such as:

• India,
• United States,
• United Kingdom,
• Mexico.

In fact, the company is exporting precision-engineered components to customers in several international markets and has a high presence in the global supply chain of manufacturing.

Strong Financial Performance

Indo-MIM has reported robust financial growth in FY26.

Financial Highlights (FY26):

Metric    FY26    FY25

Revenue from Operations    ₹4,192.98 crore    ₹3,329.58 crore  
Net Profit    ₹533.54 crore    ₹423.73 crore

A 26% increase in revenue and a strong rise in profitability were the results of the company in its engineering businesses.

Significance of the Stake Sale

The proposed transaction shows how academic institutions can benefit from investments in innovative and high-growth companies. IIT Madras can partially monetise its holding while being a part of Indo-MIM's future growth as a shareholder.

Investors now wait for the IPO price band and subscription dates to be announced, which will determine the valuation of the issue and the proceeds from the Offer for Sale.